The Federal Direct Loan (Stafford) program is available to undergraduate students.

Subsidized loans are awarded on the basis of financial need. Interest is not charged while you are attending classes at least half time.

For loans originated prior to July 1, 2006, the interest rate could change each year of repayment, but by law, it cannot exceed 8.25%. The interest rate is adjusted each year on July 1

For subsidized loans originated on or after July 1, 2006 through June 30, 2008, the interest rate is fixed at 6.8%.

For subsidized loans originated on or after July 1, 2008, the interest rate is fixed at 6.00%.

For subsidized loans originated on or after July 1, 2009, the interest rate is fixed at 5.60%.

For subsidized loans originated on or after July 1, 2010, the interest rate is fixed at 4.50%.

For subsidized loans originated on or after July 1, 2011, the interest rate is fixed at 3.40%.

For subsidized loans originated on or after July 1, 2013, the interest rate is fixed at 3.86%.

For subsidized loans originated on or after July 1, 2014, the interest rate is fixed at 4.66%.

For subsidized loans originated on or after July 1, 2015, the interest rate is fixed at 4.29%.

Unsubsidized loans are not awarded on the basis of need. Interest is charged from the time the loan is disbursed until it is paid in full. Interest may be capitalized.

For unsubsidized loans originated on or after July 1, 2006, the interest rate is fixed at 6.80%.

For unsubsidized loans originated on or after July 1, 2013, the interest rate is fixed at 3.86%.

For unsubsidized loans originated on or after July 1, 2014, the interest rate is fixed at 4.66%.

For unsubsidized loans originated on or after July 1, 2015, the interest rate is fixed at 4.29%

150% Limit on Direct Subsidized Loans is in effect as of July 1,2013

The law states that a first-time borrower's eligibility for a Direct Subsidized Loan may not exceed 150% of the length of the borrower's educational program. The borrower's educational program is defined as the eligible program that the student is enrolled in, and for which he or she is applying for a Direct Subsidized Loan. The Department of Education will determine whether a borrower loses interest subsidy on his or her Direct Subsidized Loans as a result of the 150% limit.

All first-time borrowers on or after July1, 2013 are subject to these provisions.

Dependent students:

Freshman: $5500 (no more than $3500 in subsidized)

Sophomore: $6500 (no more than $4500 in subsidized)

Junior/Senior: $7500 (no more than $5500 in subsidized)

Maximum aggregate limit is $31000 (no more than $23000 in subsidized)

Independent students:

Freshman: $9500 (no more than $3500 in subsidized)

Sophomore: $10500 (no more than $4500 in subsidized)

Junior/Senior: $12500 (no more than $5500 in subsidized)

Maximum aggregate limit is $57500 (no more than $23000 in subsidized)

Other terms of both Subsidized and Unsubsidized Federal Direct Loans (Stafford):

As of October 1, 2014, the loan fee will be 1.073% of the loan, subject to change. This fee is deducted proportionately each time a loan disbursement is made.

As of December 1, 2013, the loan fee will be 1.072% of the loan, subject to change. This fee is deducted proportionately each time a loan disbursement is made.

As of July 1, 2013, the loan fee will be 1.051% of the loan, subject to change. This fee is deducted proportionately each time a loan disbursement is made.

As of July 1, 2012, the loan fee will be 1% of the loan, subject to change. This fee is deducted proportionately each time a loan disbursement is made.

As of July 1, 2008, the loan fee is net 0.5% of the loan, subject to change. This fee is deducted proportionately each time a loan disbursement is made.

Direct Loan has a forgiveness/cancellation provision available to students under certain circumstances. This information is found in the Student Guide.

Additional information on the Direct Loan (Stafford) program is available in the Student Guide.

Direct Loans may be serviced by one of eleven service centers. It is the goal of the Department of Education that all of your Direct Loans will have the same servicer. To find out who is servicing your loan(s), please log onto the National Student Loan Data System (NSLDS) and view the individual loan(s). Each will list the servicer with their customer service contact information. All Customer Service Centers and their contact information can be found at https://studentloans.gov/myDirectLoan/additionalInformation.action